Executive Vice Chairman and CEO Stefano Pessina said, "Overall we are
pleased with the progress this quarter, with results in line with our
expectations. We continue to anticipate that growth in the second half
of fiscal 2017 will reflect the new strategic pharmacy partnerships we
announced last year. As a result, we have raised the lower end of our
fiscal year guidance by 5 cents per share. In addition, we continue to
work toward closing the pending acquisition of Rite Aid Corporation in
the early part of this calendar year."

Overview of First Quarter Results

Fiscal 2017 first quarter net earnings attributable to Walgreens Boots
Alliance determined in accordance with GAAP decreased 5.0 percent to
$1.1 billion compared with the same quarter a year ago, while GAAP
diluted net earnings per share decreased 4.0 percent to $0.97 compared
with the same quarter a year ago. The decreases in GAAP net earnings and
GAAP net earnings per share primarily reflect a lower impact of UK tax
rate reductions.

Adjusted fiscal 2017 first quarter net earnings attributable to
Walgreens Boots Alliance1 increased 6.1 percent to $1.2
billion, up 8.2 percent on a constant currency basis, compared with the
same quarter a year ago. Adjusted diluted net earnings per share for the
quarter increased 6.8 percent to $1.10, up 9.7 percent on a constant
currency basis, compared with the same quarter a year ago.

Sales in the first quarter were $28.5 billion, a decrease of 1.8 percent
from the year-ago quarter, and an increase of 1.1 percent on a constant
currency basis.

GAAP operating income in the first quarter was $1.4 billion, a decrease
of 1.4 percent from the same quarter a year ago. Adjusted operating
income in the first quarter was $1.7 billion, an increase of 0.4 percent
from the same quarter a year ago, and an increase of 2.8 percent on a
constant currency basis.

GAAP net cash provided by operating activities was $525 million and free
cash flow was $147 million in the first quarter.

Rite Aid Acquisition

Walgreens Boots Alliance is actively engaged in discussions with the
Federal Trade Commission (FTC) regarding its pending acquisition of Rite
Aid Corporation, which was announced 27 October 2015. The company is
working toward a close of the acquisition in the early part of this
calendar year. The transaction is subject to the expiration or
termination of applicable waiting periods under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended, and other customary
closing conditions.

As announced 20 December 2016, Walgreens Boots Alliance and Rite Aid
have entered into an agreement to sell 865 Rite Aid stores and certain
assets related to store operations to Fred's, Inc. for $950 million in
an all-cash transaction. The divestiture transaction is subject to FTC
approval, the approval and completion of the pending acquisition of Rite
Aid by Walgreens Boots Alliance and other customary closing conditions.

Taking into account the expected divestitures, Walgreens Boots Alliance
continues to expect that the acquisition will be accretive to its
adjusted diluted net earnings per share in the first full year after
closing of the transaction. The company also continues to expect that it
will realize synergies from the acquisition in excess of $1 billion, to
be fully realized within three to four years of closing of the merger.
These synergies have been updated where practicable and, as previously
disclosed, are expected to be derived primarily from procurement, cost
savings and other operational matters.

Company Outlook

The company raised the lower end of its guidance for fiscal year 2017 by
5 cents per share and now anticipates adjusted diluted net earnings per
share of $4.90 to $5.20.

This guidance assumes accretion of $0.05 to $0.12 from Rite Aid and is
based on the above disclosure regarding expected store divestitures and
timing of closing. Additionally, this guidance assumes current exchange
rates for the rest of the fiscal year and continuation of its normal
anti-dilutive share buyback program.

First Quarter Business Division Highlights

Retail Pharmacy USA:

Retail Pharmacy USA had first quarter sales of $20.7 billion, an
increase of 1.4 percent over the year-ago quarter. Sales in comparable
stores increased 1.1 percent compared with the same quarter a year ago.

Pharmacy sales, which accounted for 69.1 percent of the division's sales
in the quarter, increased 2.5 percent compared with the year-ago
quarter. Comparable pharmacy sales increased 2.0 percent. The division
filled 237.6 million prescriptions (including immunizations) adjusted to
30-day equivalents in the quarter, an increase of 3.0 percent over the
year-ago quarter. Prescriptions filled in comparable stores increased
3.4 percent compared with the same quarter a year ago, primarily due to
continued growth in Medicare Part D volume. The division's retail
prescription market share on a 30-day adjusted basis in the first
quarter increased approximately 40 basis points over the year-ago
quarter to 19.5 percent, as reported by IMS Health. Growth in comparable
sales resulted from increased pharmacy volume and brand inflation,
partially offset by reimbursement pressure and the impact of generics.

Retail sales decreased 0.9 percent in the first quarter compared with
the year-ago period, which includes the impact of the previously
announced closure of certain e-commerce operations. Comparable retail
sales were down 0.5 percent in the quarter, due to declines in the
consumables and general merchandise category and in the personal care
category, partially offset by increases in the health and wellness
category and beauty category. Since the end of the first quarter, the
company has completed the first phase of the rollout of its new,
differentiated beauty offering in more than 1,800 stores.

GAAP first quarter selling, general and administrative expenses (SG&A)
as a percentage of sales decreased 0.7 percentage point compared with
the year-ago quarter, a decrease of 0.5 percentage point on an adjusted
basis. These results demonstrate continuing benefits from the company's
previously announced $1.5 billion cost transformation program.

GAAP operating income in the first quarter increased 7.5 percent from
the year-ago quarter to $1.1 billion. Adjusted operating income in the
first quarter increased 3.7 percent from the year-ago quarter to $1.3
billion.

Retail Pharmacy International:

Retail Pharmacy International had first quarter sales of $3.0 billion, a
decrease of 14.4 percent from the year-ago quarter due to the negative
impact of currency translation. Sales increased 0.5 percent on a
constant currency basis.

On a constant currency basis, comparable store sales decreased 0.1
percent compared with the year-ago quarter. Comparable pharmacy sales
decreased 0.5 percent on a constant currency basis, primarily due to a
reduction in government pharmacy funding in the UK, which was partially
offset by growth in other international markets. Comparable retail sales
increased 0.2 percent on a constant currency basis, reflecting growth in
all countries except Chile and Mexico.

GAAP gross profit decreased 17.4 percent compared with the same quarter
a year ago, largely due to currency translation. On a constant currency
basis, adjusted gross profit decreased 2.7 percent, primarily due to
lower margins in the UK.

GAAP operating income in the first quarter decreased 39.7 percent from
the year-ago quarter to $182 million, while adjusted operating income
decreased 32.4 percent to $213 million, down 21.6 percent on a constant
currency basis.

Pharmaceutical Wholesale:

Pharmaceutical Wholesale had first quarter sales of $5.4 billion, a
decrease of 6.5 percent from the year-ago quarter. On a constant
currency basis, comparable sales increased 4.7 percent, which was
slightly ahead of the company's estimate of market growth weighted on
the basis of country wholesale sales.

GAAP operating income in the first quarter was $160 million, which
included $17 million from the company's equity earnings in
AmerisourceBergen Corporation, compared with $143 million in the
year-ago quarter. Adjusted operating income increased 34.9 percent to
$224 million, up 45.2 percent on a constant currency basis. Excluding
$58 million in adjusted equity earnings from AmerisourceBergen, adjusted
operating income was up 10.2 percent on a constant currency basis, with
cost benefits outweighing margin pressures.

Conference Call

Walgreens Boots Alliance will hold a one-hour conference call to discuss
the first quarter results beginning at 8:30 a.m. Eastern time today, 5
January 2017. The conference call will be simulcast through the
Walgreens Boots Alliance investor relations website at: http://investor.walgreensbootsalliance.com.
A replay of the conference call will be archived on the website for 12
months after the call.

The replay also will be available from 11:30 a.m. Eastern time, 5
January 2017 through 12 January 2017, by calling +1 855 859 2056 within
the USA and Canada, or +1 404 537 3406 outside the USA and Canada, using
replay code 30360241.

1 Please see the "Supplemental Information (Unaudited)
Regarding Non-GAAP Financial Measures" at the end of this press release
for more detailed information regarding non-GAAP financial measures.

Cautionary Note Regarding Forward-Looking Statements: All statements
in this release that are not historical including, without limitation,
those regarding estimates of and goals for future financial and
operating performance (including those under "Company Outlook" above),
the expected execution and effect of our business strategies, our
cost-savings and growth initiatives and restructuring activities and the
amounts and timing of their expected impact, and our pending agreement
with Rite Aid and the transactions contemplated thereby and their
possible effects, are forward-looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Words such as "expect," "likely," "outlook," "forecast,"
"preliminary," "would," "could," "should," "can," "will," "project,"
"intend," "plan," "goal," "guidance," "target," "aim," "continue,"
"sustain," "synergy," "on track," "on schedule," "headwind," "tailwind,"
"believe," "seek," "estimate," "anticipate," "may," "possible,"
"assume," and variations of such words and similar expressions are
intended to identify such forward-looking statements. These
forward-looking statements are not guarantees of future performance and
are subject to risks, uncertainties and assumptions, known or unknown,
that could cause actual results to vary materially from those indicated
or anticipated, including, but not limited to, those relating to the
impact of private and public third-party payers' efforts to reduce
prescription drug reimbursements, fluctuations in foreign currency
exchange rates, the timing and magnitude of the impact of branded to
generic drug conversions and changes in generic drug prices, our ability
to realize synergies and achieve financial, tax and operating results in
the amounts and at the times anticipated, supply arrangements including
our commercial agreement with AmerisourceBergen, the arrangements and
transactions contemplated by our framework agreement with
AmerisourceBergen and their possible effects, the risks associated with
the company's equity method investment in AmerisourceBergen, the
occurrence of any event, change or other circumstance that could give
rise to the termination, cross-termination or modification of any of our
contractual obligations, the amount of costs, fees, expenses and charges
incurred in connection with strategic transactions, whether the costs
associated with restructuring activities will exceed estimates, our
ability to realize expected savings and benefits from cost-savings
initiatives, restructuring activities and acquisitions in the amounts
and at the times anticipated, the timing and amount of any impairment or
other charges, the timing and severity of cough, cold and flu season,
changes in management's assumptions, the risks associated with
governance and control matters, the ability to retain key personnel,
changes in economic and business conditions generally or in particular
markets in which we participate, changes in financial markets and
interest rates, the risks associated with international business
operations, including the risks associated with the proposed withdrawal
of the United Kingdom from the European Union, the risk of unexpected
costs, liabilities or delays, changes in vendor, customer and payer
relationships and terms, including changes in network participation and
reimbursement terms, risks of inflation in the cost of goods, risks
associated with the operation and growth of our customer loyalty
programs, competition, risks associated with new business areas and
activities, risks associated with acquisitions, divestitures, joint
ventures and strategic investments, including those relating to our
ability to satisfy the closing conditions and consummate the pending
acquisition of Rite Aid and related matters (including the pending
divestiture transaction to sell certain Rite Aid stores and assets to
Fred's, Inc.) on a timely basis or at all, the risks associated with the
integration of complex businesses, outcomes of legal and regulatory
matters, including with respect to regulatory review and actions in
connection with the pending acquisition of Rite Aid and related matters,
and changes in legislation, regulations or interpretations thereof.
These and other risks, assumptions and uncertainties are described in
Item 1A (Risk Factors) of our Annual Report on Form 10-K for the fiscal
year ended 31 August 2016, which is incorporated herein by reference,
and in other documents that we file or furnish with the Securities and
Exchange Commission. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those indicated or anticipated by such
forward-looking statements. Accordingly, you are cautioned not to place
undue reliance on these forward-looking statements, which speak only as
of the date they are made. Except to the extent required by law, we do
not undertake, and expressly disclaim, any duty or obligation to update
publicly any forward-looking statement after the date of this release,
whether as a result of new information, future events, changes in
assumptions or otherwise.

Please refer to the supplemental information presented below for
reconciliations of the non-GAAP financial measures used in this release
to the most comparable GAAP financial measure and related disclosures.

The company was created through the combination of Walgreens and
Alliance Boots in December 2014, bringing together two leading companies
with iconic brands, complementary geographic footprints, shared values
and a heritage of trusted health care services through pharmaceutical
wholesaling and community pharmacy care, dating back more than 100 years.

Walgreens Boots Alliance is the largest retail pharmacy, health and
daily living destination across the USA and Europe. Walgreens Boots
Alliance and the companies in which it has equity method investments
together have a presence in more than 25* countries and employ more than
400,000* people. The company is a global leader in pharmacy-led, health
and wellbeing retail and, together with the companies in which it has
equity method investments, has over 13,200* stores in 11* countries as
well as one of the largest global pharmaceutical wholesale and
distribution networks, with over 390* distribution centers delivering to
more than 230,000** pharmacies, doctors, health centers and hospitals
each year in more than 20* countries. In addition, Walgreens Boots
Alliance is one of the world's largest purchasers of prescription drugs
and many other health and wellbeing products.

The company's portfolio of retail and business brands includes
Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as
increasingly global health and beauty product brands, such as No7,
Botanics, Liz Earle and Soap & Glory.

In October 2016Walgreens Boots Alliance received the United Nations
Foundation Global Leadership Award for its commitment to the UN's
Sustainable Development Goals.

The following information provides reconciliations of the
supplemental non-GAAP financial measures, as defined under SEC
rules, presented in this press release to the most directly
comparable financial measures calculated and presented in
accordance with generally accepted accounting principles in the
United States (GAAP). The company has provided the non-GAAP
financial measures in the press release, which are not calculated
or presented in accordance with GAAP, as supplemental information
and in addition to the financial measures that are calculated and
presented in accordance with GAAP.

These supplemental non-GAAP financial measures are presented
because management has evaluated the company's financial results
both including and excluding the adjusted items or the effects of
foreign currency translation, as applicable, and believe that the
supplemental non-GAAP financial measures presented provide
additional perspective and insights when analyzing the core
operating performance of the company's business from period to
period and trends in the company's historical operating results.
These supplemental non-GAAP financial measures should not be
considered superior to, as a substitute for or as an alternative
to, and should be considered in conjunction with, the GAAP
financial measures presented in the press release. The company
does not provide a reconciliation for non-GAAP estimates on a
forward-looking basis (including the information under "Company
Outlook" above) where it is unable to provide a meaningful or
accurate calculation or estimation of reconciling items and the
information is not available without unreasonable effort. This is
due to the inherent difficulty of forecasting the timing or amount
of various items that have not yet occurred, are out of the
company's control and/or cannot be reasonably predicted, and that
would impact diluted net earnings per share, the most directly
comparable forward-looking GAAP financial measure. For the same
reasons, the company is unable to address the probable
significance of the unavailable information. Forward-looking
non-GAAP financial measures provided without the most directly
comparable GAAP financial measures may vary materially from the
corresponding GAAP financial measures.

Constant Currency

The company also presents certain information related to current period
operating results in "constant currency," which is a non-GAAP financial
measure. These amounts are calculated by translating current period
results at the foreign currency exchange rates used in the comparable
period in the prior year. The company presents such constant currency
financial information because it has significant operations outside of
the United States reporting in currencies other than the U.S. dollar and
this presentation provides a framework to assess how its business
performed excluding the impact of foreign currency exchange rate
fluctuations.

Comparable Sales

For our Retail Pharmacy divisions, comparable stores are defined as
those that have been open for at least 12 consecutive months and that
have not been closed for seven or more consecutive days, undergone a
major remodel or been subject to a natural disaster during the past 12
months. Relocated and acquired stores are not included as comparable
stores for the first 12 months after the relocation or acquisition.
Comparable store sales, comparable pharmacy sales and comparable retail
sales refer to total sales, pharmacy sales and retail sales,
respectively, in such stores. For our Pharmaceutical Wholesale division,
comparable sales are defined as sales excluding acquisitions and
dispositions. The method of calculating comparable sales varies across
the industries in which we operate. As a result, our method of
calculating comparable sales may not be the same as other companies'
methods.

Presented on a pre-tax basis. The comparable prior period has been
recast in the fourth quarter fiscal 2016 accordingly to reflect the
tax impact of adjustments as a single adjustment. There has been no
change in Net earnings attributable to Walgreens Boots Alliance,
Inc., Diluted net earnings per share, Adjusted net earnings
attributable to Walgreens Boots Alliance, Inc. or Adjusted diluted
net earnings per share from those previously reported.

(2)

Discrete tax-only items.

(3)

Represents the adjustment to the GAAP basis tax provision
commensurate with non-GAAP adjustments.

OPERATING INCOME BY DIVISION

Three Months Ended November 30, 2016

Retail

Retail

Walgreens

Pharmacy

Pharmacy

Pharmaceutical

Boots Alliance,

USA

International

Wholesale(1)(2)

Eliminations

Inc.(2)

Operating Income (GAAP)

$

1,105

$

182

$

160

$ -

$

1,447

Acquisition-related amortization

37

25

20

-

82

Cost transformation

72

6

3

-

81

LIFO provision

58

-

-

-

58

Adjustments to equity earnings in AmerisourceBergen

-

-

41

-

41

Acquisition-related costs

17

-

-

-

17

Adjusted Operating Income (Non-GAAP measure)

$

1,289

$

213

$

224

$ -

$

1,726

Sales

$

20,659

$

2,962

$

5,417

$ (537

)

$

28,501

Operating Margin (GAAP)(2)

5.3

%

6.1

%

2.6

%

5.0

%

Adjusted Operating Margin (Non-GAAP measure)(2)

6.2

%

7.2

%

3.1

%

5.9

%

Three Months Ended November 30, 2015

Retail

Retail

Walgreens

Pharmacy

Pharmacy

Pharmaceutical

Boots Alliance,

USA

International(3)

Wholesale

Eliminations(3)

Inc.

Operating Income (GAAP)

$

1,028

$

302

$

143

$

(5

)

$ 1,468

Acquisition-related amortization

50

8

23

-

81

Cost transformation

85

5

-

-

90

LIFO provision

46

-

-

-

46

Acquisition-related costs

34

-

-

-

34

Adjusted Operating Income (Non-GAAP measure)

$

1,243

$

315

$

166

$

(5

)

$ 1,719

Sales

$

20,370

$

3,459

$

5,796

$

(592

)

$ 29,033

Operating Margin (GAAP)

5.0

%

8.7

%

2.5

%

5.1

%

Adjusted Operating Margin (Non-GAAP measure)

6.1

%

9.1

%

2.9

%

5.9

%

(1)

Operating Income for Pharmaceutical Wholesale includes Equity
earnings in AmerisourceBergen. As a result of the two month
reporting lag, Operating Income for the three month period ended
November 30, 2016 includes AmerisourceBergen equity earnings for the
period of July 1, 2016 through September 30, 2016.

To improve comparability, certain classification changes were made
to prior period Sales, Cost of sales and Selling, general and
administrative expenses. These changes had no impact on Operating
Income. The reclassifications were made in the fourth quarter of
fiscal 2016 and were set out in the appendix to the presentation of
that quarter's earnings.

EQUITY EARNINGS IN AMERISOURCEBERGEN

Three Months Ended

November 30, 2016

Equity earnings in AmerisourceBergen (GAAP)

$

17

Change in fair market value of AmerisourceBergen warrants

30

Acquisition-related amortization

23

LIFO provision

(12

)

Adjusted Equity earnings in AmerisourceBergen (Non-GAAP measure)

$

58

GROSS PROFIT BY DIVISION

Three months ended November 30, 2016

Retail

Retail

Walgreens

Pharmacy

Pharmacy

Pharmaceutical

Boots Alliance,

USA

International

Wholesale

Eliminations

Inc.

Gross Profit (GAAP)

$

5,439

$

1,175

$

502

$

-

$

7,116

LIFO provision

58

-

-

-

58

Adjusted Gross Profit (Non-GAAP measure)

$

5,497

$

1,175

$

502

$

-

$

7,174

Sales

$

20,659

$

2,962

$

5,417

$

(537

)

$

28,501

Gross Margin (GAAP)

26.3

%

39.7

%

9.3

%

25.0

%

Adjusted Gross Margin (Non-GAAP measure)

26.6

%

39.7

%

9.3

%

25.2

%

Three Months Ended November 30, 2015

Retail

Retail

Walgreens

Pharmacy

Pharmacy

Pharmaceutical

Boots Alliance,

USA

International(1)

Wholesale

Eliminations(1)

Inc.(1)

Gross Profit (GAAP)

$

5,445

$

1,422

$

557

$

(5

)

$

7,419

LIFO provision

46

-

-

-

46

Adjusted Gross Profit (Non-GAAP measure)

$

5,491

$

1,422

$

557

$

(5

)

$

7,465

Sales

$

20,370

$

3,459

$

5,796

$

(592

)

$

29,033

Gross Margin (GAAP)

26.7

%

41.1

%

9.6

%

25.6

%

Adjusted Gross Margin (Non-GAAP measure)

27.0

%

41.1

%

9.6

%

25.7

%

(1)

To improve comparability, certain classification changes were made
to prior period Sales, Cost of sales and Selling, general and
administrative expenses. These changes had no impact on Operating
Income. The reclassifications were made in the fourth quarter of
fiscal 2016 and were set out in the appendix to the presentation of
that quarter's earnings.

To improve comparability, certain classification changes were made
to prior period Sales, Cost of sales and Selling, general and
administrative expenses. These changes had no impact on Operating
Income. The reclassifications were made in the fourth quarter of
fiscal 2016 and were set out in the appendix to the presentation of
that quarter's earnings.

FREE CASH FLOW

Three Months Ended

November 30,

November 30,

2016

2015

Net cash provided by operating activities (GAAP)

525

$

732

Less: Additions to property, plant and equipment

(378

)

(340

)

Free cash flow (Non-GAAP measure)(1)

147

$

392

(1)

Free cash flow is defined as Net cash provided by operating
activities in a period minus additions to Property, plant and
equipment (capital expenditures) made in that period. This measure
does not represent residual cash flows available for discretionary
expenditures as the measure does not deduct the payments required
for debt service and other contractual obligations or payments for
future business acquisitions. Therefore, we believe it is important
to view free cash flow as a measure that provides supplemental
information to our entire statements of cash flows.

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